IFRS 16 - Lease Modification

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Jessa Marie
Posts: 9
Joined: 14 Oct 2020, 09:39

IFRS 16 - Lease Modification

Post by Jessa Marie »

Is there a defined order of priority in computing adjustments due to lease modifications? Especially if there are more than 1 changes in the scope of lease to take effect at the same time.

I have this example as a reference:
"Let’s assume that, after initial recognition set out in the previous example, a lease modification is made on 1 January 20X6 as follows:

the scope is increased by additional 1,500 sq m
the lease term is shortened from 10 to 8 years
annual payments are increased to $150,000
The revised discount rate at the lease modification date is 7%."

Here's the link: https://ifrscommunity.com/knowledge-bas ... fications/
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Marek Muc
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Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland

Re: IFRS 16 - Lease Modification

Post by Marek Muc »

there's no defined order of priority as the impacts can be calculated in any order
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